Today’s price action on the AUDJPY has triggered our profit target at 85.80. The idea posted over the weekend was to watch for a selling opportunity between 87.90 and 88.00.
Following a high of 88.01 this past Monday, the pair plummeted to reach a low of 85.45. As anticipated, the price is rebounding after encountering buyers at 85.80 support. As long as this level holds on a daily closing basis (5 pm EST), further losses will be limited.
That brings us to something we can keep an eye on for next week. Given the breakdown across the yen pairs, I’m not interested in buying the AUDJPY at support.
Instead, I’m going to keep an eye on the 87.00 handle next week. A sell signal from this area could provide another opportunity to get short. Alternatively, a daily close below 85.80 would have me watching for a short opportunity just the same.
I’m flat for now after booking profits at 85.80, but I’m still interested in buying yen strength as long as these patterns prevail.
Keep in mind that Monday features the RBA monetary policy meeting minutes at 9:30 pm EST. Then on Wednesday, we have Australia employment change and the unemployment rate at 9:30 pm EST. These two events usually cause a big stir, so be sure to keep them on your calendar.
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